RERA
# What is RERA ? How does it safeguard the homebuyers?
The Real Estate Regulation and Development Act 2016 has come into effect on March 25, 2016. This an Act to establish the Real Estate Regulatory Authority for regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal.
Compensation to buyers/consumers
Where any person makes an advance or a deposit on the basis of the information contained in the notice advertisement or prospectus, or on the basis of any model apartment, plot or building, as the case may be, and sustains any loss or damage by reason of any incorrect, false statement included therein, he shall be compensated by the promoter in the manner as provided under this Act:
Provided that if the person affected by such incorrect, false statement contained in the notice, advertisement or prospectus, or the model apartment, plot or building, as the case may be, intends to withdraw from the proposed project, he shall be returned his entire investment along with interest at such rate as may be prescribed and the compensation in the manner provided under this Act.
15(1) Ownership Transfer by Promoter:
The promoter shall not transfer or assign his majority rights and liabilities in respect of a real estate project to a third party without obtaining prior written consent from two-third allottees, except the promoter, and without the prior written approval of the Authority: Provided that such transfer or assignment shall not affect the allotment or sale of the apartments, plots or buildings as the case may be, in the real estate project made by the erstwhile promoter.
16(1) Insurance of the Project:
The Promoter of the real estate project shall obtain all such insurances as may be notified by the appropriate Government,
- Title of the land and building as a part of the real estate project; and
- Construction of the real estate project
18(1) Compensation to Consumers:
If the promoter fails to complete or is unable to give possession of an apartment, plot or building –
- In accordance with the terms of the agreement for sale or, as the case may be, duly completed by the date specified therein; or
- Due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this act for any other reason,
He shall be liable on demand of the allottees or consumers or buyers, in case the buyers wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building as the case may be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this act.
Provided that where the buyer on consumer does not intend to withdraw from the project, he shall be paid, by the promoter, interest for every month of delay till the handing over of the possession at such rate as may be specified.
The Promoter shall compensate the buyer or consumers in case of any loss caused to him due to defective title of the land, on which the project
